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BTLG Table of Contents > Sales and Use Tax Annotations > U > 570.0000 Use of Property in State and Use Tax Generally > Annotation 570.1182

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U

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570.0000 Use of Property in State and Use Tax Generally

Annotation 570.1182

(d) Exclusions

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570.1182 Testing to Destruction. The testing to destruction of property purchased ex-tax for resale and then removed from the production line for testing does not result in a use tax liability. The fact that the customer specifically requested the testing and was charged a separate price for the testing does not alter this conclusion.

If following the testing, an entire production lot was junked, no use tax would apply to the cost of those junked items. 2/18/75.